Uniswap is a decentralized exchange (DEX) built on the Ethereum blockchain. It allows users to trade cryptocurrencies in a peer-to-peer manner without the need for intermediaries or custodians.

What makes Uniswap unique is that it uses an automated market maker (AMM) model for price discovery and liquidity provision. This means that instead of relying on a traditional order book, where buyers and sellers place orders and wait for them to be matched, Uniswap uses a pool of tokens to determine the price of a cryptocurrency.

The pools are created by users who deposit equal amounts of two different cryptocurrencies, known as a liquidity pair. When someone wants to trade one of the tokens for the other, the trade is executed at a price determined by the ratio of the tokens in the pool. This creates a decentralized, continuous market that can adjust to changing supply and demand conditions.

Uniswap also has its own native token, called UNI, which is used to govern the platform and participate in decision-making processes. UNI token holders can vote on proposals related to the development and governance of the Uniswap platform.

Overall, Uniswap has gained significant popularity among users who prefer decentralized exchanges and the unique features offered by the automated market maker model.